Skip to main content

THE END IS NEAR : VENEZUELA'S ECONOMY ABOUT TO "FLAT-LINE" .














Venezuela's economy
The death of pragmatism




Sep 3rd 2014, 16:42 



by P.G. | CARACAS








IT WAS billed as a “big shake-up”. With Venezuela immersed in its most severe economic crisis since 2003, President Nicolás Maduro's announcement of a major restructuring of his government raised hopes that he might have a plan to tackle the problem.




 Instead, on September 2nd Mr Maduro ruled out any “capitalist” solution, declared his economic policy “successful” and sidelined Rafael Ramírez, the only cabinet member proposing substantial change.





Mr Ramírez, chairman of the state oil corporation and vice-president for the economy, had argued for a unified exchange rate, reducing the money supply and raising the domestic price of petrol. After months of dithering, the president finally gave his answer by moving Mr Ramírez to the foreign ministry and splitting his super-portfolio into three separate jobs, none of them in the hands of a political heavyweight.





Venezuela is in trouble. 


Such trouble, in fact, that the central bank (BCV) has not published GDP figures since the beginning of the year and is two months behind with inflation figures. 



Leaks from inside the BCV suggest annual inflation is now well over 60% and that GDP fell by almost 5% in the first half of 2014. Shortages of food, medicines and other basic goods, including spare parts and tyres for vehicles, have reached critical levels. Representatives of private health clinics say more than half have suspended elective surgery for lack of crucial supplies and parts for medical equipment. 



The government plans to address shortages by fingerprinting customers to prevent them from buying extra goods to sell on the black market.





Dependent on oil revenues for 97 out of every hundred dollars in foreign earnings, and on imports for a large part of what it consumes, the country is heavily in debt to foreign suppliers, many of whom have cut off credit. 




But instead of adopting an adjustment plan, the government has continued to print money and introduce ever more stringent price and exchange controls. 




Massive price differentials with neighbouring Colombia have fuelled the contraband trade, to which the authorities have responded by closing the border at night.





Although the president has often signalled his willingness to adopt corrective measures, he has been unable to achieve consensus among the different factions within the government. 





Many are ideologically opposed to what they see as “neoliberal” measures. 




Others merely fear the short-term consequences of price rises—including the potential loss of a majority in parliament at next year’s legislative elections. 



And some are making a fortune from the arbitrage opportunities offered by a dysfunctional economy.





The big winners, politically, from this week’s reshuffle are the hard left and the military. 



Mr Ramírez’s job as economy and finance supremo has been taken by a general. 



The new energy minister is Asdrúbal Chávez, cousin of the late Hugo Chávez, Mr Maduro’s predecessor and the founder of chavismo. 




Another man who may have reason to be satisfied is Diosdado Cabello, chairman of parliament and vice-president of the ruling United Socialist Party of Venezuela (PSUV). 




A retired military officer, with significant influence in the armed forces, Mr Cabello was one of the three most powerful figures in the regime at the beginning of the week. 




With Mr Ramírez sidelined, that number is down to two.








http://www.economist.com/blogs/americasview/2014/09/venezuelas-economy?fsrc=scn/tw/te/bl/thedeathofpragmatism

Popular posts from this blog

THE MOST SOUGHT AFTER MANGOES IN THE WORLD ....

While "Flavor" is very subjective, and each country that grows mangoes is very nationalistic, these are the mango varieties that are the most sought after around the world because of sweetnesss (Brix) and demand.

The Chaunsa has a Brix rating in the 22 degree level which is unheard of!
Carabao claims to be the sweetest mango in the world and was able to register this in the Guiness book of world records.
Perhaps it is time for a GLOBAL taste test ???





In alphabetical order by Country....










India




Alphonso





Alphonso (mango)
From Wikipedia, the free encyclopedia








Alphonso (हापुस Haapoos in Marathi, હાફુસ in Gujarati, ಆಪೂಸ್ Aapoos in Kannada) is a mango cultivar that is considered by many[who?] to be one of the best in terms of sweetness, richness and flavor. 


It has considerable shelf life of a week after it is ripe making it exportable. 

It is also one of the most expensive kinds of mango and is grown mainly in Kokan region of western India.

 It is in season April through May and the fruit wei…

Mangoes date back 65 million years according to research ...

Experts at the Birbal Sahni Institute of Palaeobotany (BSIP) here have traced the origin of mango to the hills of Meghalaya, India from a 65 million year-old fossil of a mango leaf. 





The earlier fossil records of mango (Mangifera indica) from the Northeast and elsewhere were 25 to 30 million years old. The 'carbonized leaf fossil' from Damalgiri area of Meghalaya hills, believed to be a mango tree from the peninsular India, was found by Dr R. C. Mehrotra, senior scientist, BSIP and his colleagues. 




After careful analysis of the fossil of the mango leaf and leaves of modern plants, the BISP scientist found many of the fossil leaf characters to be similar to mangifera.


An extensive study of the anatomy and morphology of several modern-day species of the genus mangifera with the fossil samples had reinforced the concept that its centre of origin is Northeast India, from where it spread into neighbouring areas, says Dr. Mehrotra. 




The genus is believed to have disseminated into neighb…

DHL (INDIA) makes gifting mangoes as easy as 1-2-3-....

Gifting mangoes is now easy with DHL
Announcement / Corporate


 May 19, 2011, 14:04 IST





Come this summer pamper your loved ones abroad with a box of delicious mangoes through DHL’s Express Easy Mango service, a unique one-stop-shop and hassle-free service for gifting mangoes all across the world.






This unique service by DHL Express, the world’s leading express company, allows customers to send mangoes from India across the world to the following countries Belgium, Canada, Czech Republic, Germany, Greece, Hungary, Hong Kong, Italy, Luxemburg, Maldives, Netherlands, Norway, Oman, Qatar Singapore, Switzerland and Sweden.





Mangoes can be availed of free of cost by merely paying for the Air Express service. In addition, DHL Express assists customers with the necessary paperwork along with procurement of quality-grade Alphonso mangoes.





Commenting on the new service, Mr. R.S Subramanian, Country Head, DHL Express India said: “With the advent of the mango season, it is no wonder that DHL Express Ea…